Iran has further stepped up its production of highly enriched uranium, according to the UN nuclear watchdog.

In a confidential report seen by the BBC, the International Atomic Energy Agency (IAEA) said Iran now possesses over 400kg of uranium enriched to 60% purity - well above the level used for civilian purposes and close to weapons grade, and a near 50% increase in three months.

It is enough for about 10 nuclear weapons if further refined, making Iran the only non nuclear-armed state producing uranium at this level.

Iran has produced highly enriched uranium at a rate equivalent to roughly one nuclear weapon per month over the past three months during the ongoing nuclear negotiations between Tehran and Washington.

"The significantly increased production and accumulation of highly enriched uranium by Iran... is of serious concern," said IAEA Director General Rafael Grossi.

Following the IAEA report, Israel on Saturday accused Iran of being "totally determined" to acquire nuclear weapons.

"Such a level of enrichment exists only in countries actively pursuing nuclear weapons and has no civilian justification whatsoever," a statement from Prime Minister Benjamin Netanyahu's office said.

Iranian Foreign Minister Abbas Araghchi responded that Tehran considers nuclear weapons "unacceptable".

"If the issue is nuclear weapons, yes, we too consider this type of weapon unacceptable," Araghchi, Iran's lead negotiator in the US-Iran talks, said in a televised speech. "We agree with them on this issue."

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